Apple Resolves EU Dispute with Updated App Store Regulations

Apple is revamping its App Store regulations in the European Union, aiming to settle its differences with the Commission regarding business terms and alternative distribution methods. Under the new framework, all developers distributing apps will adhere to a unified set of business terms, with a 5 percent Core Technology Commission fee applied to digital transactions for apps available outside the App Store.

These updated terms will take effect on October 1st. They introduce a 26 percent commission for apps utilizing Apple’s in-app purchase system, while developers opting for alternative payment providers will face a 20 percent fee. Additionally, a 15 percent commission will apply to purchases that direct users outside the app. Developers participating in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program will benefit from reduced rates.

With these changes, developers in the EU can implement both in-app purchases and alternative payment systems. However, they are required to maintain their chosen payment options for a minimum of 12 months to ensure consistency and clarity for users, according to Apple.

A 5 percent Core Technology Commission will also apply to digital transactions in apps distributed via third-party app stores and the web. Notably, Apple will eliminate the initial acquisition fee, store services fee, and the Core Technology Fee, which previously charged €0.50 per download for apps exceeding 1 million annual installs.

Web distribution will be exclusive to the EU, with Apple setting eligibility criteria for those wishing to run a third-party app marketplace online, such as being a publicly traded company or having undergone a financial audit by a licensed accountant.

Last year, Apple modified its App Store rules to align with the Digital Markets Act (DMA), a regulatory framework targeting Big Tech. The company has expressed ongoing criticism of these regulations and faced fines after the Commission determined that its App Store “anti-steering” practices breached the DMA. Recently, Apple’s attempt to exempt the App Store and iOS from the DMA was unsuccessful.

In addition to these changes, Apple is introducing new child safety features for the EU. Apps designed for kids in the App Store will not be allowed to include links to websites for completing transactions. Furthermore, App Store apps will be prohibited from linking to external websites for purchases if the user is under 13 years old. Users under 18 will need parental or guardian approval to use alternative payment methods within an App Store app.